Learn about new and interesting foods and beverages that I see in stores, restaurants, and trade shows.

Thursday, June 8, 2017

Top Non-Alcoholic Drinks Trends Seen at the 2017 National Restaurant Association Show

The
National Restaurant Association Show hosted its 98th annual National
Restaurant Association Restaurant, Hotel-Motel Show and Beverage Alcohol for Restaurants
(BAR) at NRA Show from May 20–23, 2017 at Chicago’s McCormick Place. In this
article, I will highlight noteworthy trends in non-alcoholic drinks that I saw
at the show. I previously wrote about alcoholic drinks trends and food trends seen at the NRA Show.

1. Cold
Brew Coffee Is Hot

Cold brew coffee is one of the fastest growing segments in U.S.
beverages in retail and foodservice channels. Retail sales of ready-to-drink
(RTD) cold brew coffee
grew by 580% from 2011-2016 while cold brew menu penetration grew by
+300% from 2014-2016 according to data from Datassential presented byJohn
Buckner of S&D Coffee & Tea. In his “Cold Brew Coffee: Why Is Hot?” presentation,
Buckner told the NRA Show audience that cold brew coffee offers an opportunity
for foodservice operators to grow beverage sales, reach millennials, and charge
more on a per cup basis than traditional iced coffee by offering a premium,
smooth tasting product.S&D Coffee & Tea offered multiple cold
brew coffee variants including black, flavored, nitro, and soft serve ice cream
at its booth.

There was no shortage of cold brew coffee at the show as numerous
exhibitors offered up bean bags, liquid concentrate, kegged, and RTD versions. Tradecraft
Outfitters hosted a mobile pop-up that
featured Metropolis, Stumptown, and Stumptown nitro cold brew coffees on tap as
well as a stand offeringRTD cold brew
coffees from La Colombe, Limitless, Metropolis, Passion House Coffee Roasters,
Stumptown, and Zingerman’s. Califia
Farms and High Brew Coffee showed their RTD cold brew coffees while BUNN
showcased their Nitron Cold Draft Dispenser that uses one gallon concentrate
BIBs (beverage-in-boxes) or caddy packs instead of kegs. Royal Cup Coffee and
Tea offered personalized coffee by allowing visitors to create “Nitro Art” with
the Ripple Maker that prints image or text onto coffee foam. The company
offered two nitro cold brew options: Royal Cup French Roast Cold Brew Coffee and
HC Valentine Aztec Organic Cold Brew.

2. Rising
Interest in Gourmet and Specialty Coffees

Not only are millennials driving growth in
cold brew coffee, they are also driving growth in gourmet and specialty coffees.
Millennial coffee drinkers are highly interested in handcrafted beverages,
unusual flavor combinations, and learning the stories behind the coffee growers
and roasters. I had a chance to speak to
Lavazza North America’s CEO and EVP, Davide Riboni at the show. Riboni
discussed how American consumers are looking for a higher quality product and
increasing their consumption of espresso-based beverages (EBBs) such as
cappuccinos, lattes, and macchiatos, especially away from home. He said that EBBs
have about 20% market penetration in the US and thinks it can get to 50%
penetration. In addition to competition from espresso, drip filter coffee is decreasing
in popularity in the U.S. because of the convenience offered by single-serve
pods from Keurig and Nespresso.

To appeal to consumers looking for gourmet
coffees and help its hotel and restaurant customers grow their coffee business,
Lavazza is providing more single-origin coffees that offer storytelling
potential. At the show, the company showcased its new Lavazza KAFA Forest
Coffee from Ethiopia as well as relaunching the Tierra Single Origins line of Rainforest Alliance,
sustainably produced coffees from Brazil and Tanzania. KAFA offers uniqueness
due to its limited production and geographic origin as arabica coffee is
thought to have originated in this region. Unesco has acknowledged Kafa as a “biosphere
reserve”. To emphasize the luxury aspect of Lavazza KAFA, the company offered
workshops that served KAFA in three different ways including a pour over with
cinnamon and ginger (and served with a side dish of popcorn as done in Ethiopian
coffee ceremonies) and as a coffee mocktail with cold brew coffee and Monin
cherry syrup to bring out the cherry notes in the coffee.

Lavazza was not the only coffee company at
the show emphasizing the origin of its coffees. Coffee Planet’s booth signage
stated that the company “was born in Arabia where Arabica coffee was first
roasted over 500 years ago”. After starting up in the United Arab Emirates (UAE) in 2005, Coffee Planet signed partnerships to serve its coffee in highway convenience stores, expanded into hotels and supermarkets, and developed a franchised café concept in the UAE before expanding into international markets. Coffee Planet now wants to expand into the US foodservice market.

3.
Healthier Sodas and Soda Alternatives

Volume sales
of carbonated soft drinks have been declining in recent years as health
conscious consumers seek to reduce consumption of sugar and artificial
sweeteners. To retain consumers, soft drinks companies are turning to new
product launches and acquisitions to offer “healthier” sodas and soda
alternatives that provide flavor and bubbles minus the high fructose corn
syrup. The Coca-Cola Company introduced the Barrilitos Aguas Frescas line of fountain drinks that contains 50-60
calories per 8oz serving. Modeled after Mexican aguas frescas, the Barrilitos Aguas Frescas in
Horchata and Tamarind varieties are flavored with fruit juices, purees and/or
spices. PepsiCo sampled its line of Stubborn Soda that was launched in select
foodservice channels in a fountain format in 2015. Stubborn Soda contains 90-100
calories per 12oz serving and is made with Fair Trade certified cane sugar and
stevia. After completing its purchase of Bai Brands LLC in January 2017, Dr Pepper Snapple Group, Inc. showcased Bai's 5-calorie drinks (per 11.5oz serving) including Bai Bubbles that are sweetened with erythritol and stevia leaf extract). Tractor Soda Co offered Tractor Organic Crafted Soda that is USDA-certified organic and made with organic raw cane sugar, organic fruits, herbs, and spices. Another organic soda offering at the show was Brooklyn Organics Craft Ginger Ale that contains 5-10 calories per 8.4oz serving that is sweetened with organic stevia leaf extract.

4. Iced Teas Aim to Attract Health Conscious

Tea
companies are aiming to pull away consumers from soft drinks by emphasizing its
refreshing and healthy properties. Tiesta Tea has been selling loose leaf tea
blends in retail channels. At the show,
Tiesta Tea noted how “tea attracts millennials” and that its loose-leaf tea
blends offer functionality such as slenderizing (Lean Green Machine Light
Citrus Green Tea) and age defying (Blueberry Wild Child Blueberry Hibiscus
Fruit Tea). Rishi Tea launched its Craft Brew Sparkling Tea & Botanicals
line of sparkling tea and botanicals in one-way recyclable PET kegs. Rishi Craft
Brew was created to offer the energy boost of cold brew coffee and the health
benefits of kombucha in a product that contains no added sugar or
preservatives. The Runner’s High Sparkling Tea contains yerba mate and green
tea for the uplift and organic schizandra berries, an adaptogenic herb to restore the
body.